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Retail sales of licensed merchandise based on Art properties (art, artists, and museums) were down X.X% in 2010, decreasing from $X.XX billion in 2009 to $X.XX billion in 2010, according to THE LICENSING LETTER'S Annual Licensing Business Survey. "We all feel like we are working harder for smaller deals on tighter margins," says one artist.

The decline represents an improvement over the previous year, when retail sales of Art-licensed products dropped by X%, from $X.XX billion in 2008 to $X.XX billion in 2009. The Art licensing business also performed better than all other major property types in 2010. Its decline of X.X% in 2010 compares to drops of X.X% for Corporate Trademarks/Brands, X.X% for Sports, X.X% for Entertainment/Character and X.X% for Fashion. Retail sales for the licensing business as a whole declined X% in 2010.

One agent who represents Art properties describes sales for the year as "slightly down in most categories, without any huge decreases." Apparel and Furniture/Home Furnishings declined the most (X.X% and X.X%, respectively), while Stationery/Paper, Publishing, and Gifts/Novelties saw the smallest drops (.X%, X.X% and X.X%, respectively).

The first two categories are the smallest in terms of share of market, commanding X.X% and X% of total retail sales of Art-licensed products, while the last three are by far the biggest categories for artists and museums, on average, with XX.X%, XX.X% and XX.X% shares, respectively.

Of course, individual artists' and agents' results vary from the averages. One agent reports increases of XX% in most categories in 2010, although she adds the caveat that the growth was due to poor results the prior year: "2009 was dismal." Another agent reports better results in Apparel and Accessories than were the case for the sector as a whole, but notes that these were both relatively small categories for her artists. Another agent sees a notable rise in sales of Stationery and Paper products, despite the fact that this category was essentially flat for Art licensing as a whole.

While many of the artists and agents who responded to the survey or were interviewed for this story are hopeful that results will improve in 2011, there is still a sense of uncertainty and malaise. "it seems that we really didn't get better vibes at the shows until the second half of 2010 and then definitely so in early 2011," says one agent. "But I'm not sure if that's holding over. We are still quite active, but it just doesn't feel right. Caution still rules and there are too many postponed projects out there."

RETAIL SALES OF LICENSED ART-BASED MERCHANDISE, BY PRODUCT CATEGORY,
U.S. AND CANADA, 2009-2010